Exports and industrial output will continue to drive the Japanese economy, according to an October report from the Cabinet Office.
Consumption is picking up while capital expenditure is on the rise.
The Bank of Japan (BoJ) has pushed forward its target for two per cent inflation to 2020 but this may be too optimistic, analysts say.
The Japanese economy has performed well this year largely due to rising international demand. However this will not curb inflation as companies have not passed bigger earnings on to wage increments. Only a rise in domestic spending can curb inflation.
Source: ITTO